World reports

Stocks to watch

MELBOURNE, Nov 25 AAP

November 25 2012, 11:46AM

The Australian share market is expected to open higher on Monday, after overseas markets lifted on Friday.

In a holiday-shortened session on Wall Street on Friday, stocks rallied on signs that the holiday shopping season was off to a good start.

The Dow Jones Industrial Average rose 172.79 points, or 1.35 per cent, to 13,009.70 points.

The broad-market S&P 500 index added 18.12 points, or 1.30 per cent, to 1,409.15 points, and the Nasdaq Composite index lifted 40.30 points, or 1.38 per cent, to 2,966.85 points.

US markets had been shut on Thursday for the Thanksgiving holiday.

AMP Capital head of investment strategy Shane Oliver said markets in the US and Europe made solid gains on Friday on the back of unexpected rises in German and French business confidence and post-Thanksgiving optimism in the US.

"As a result, ASX 200 futures rose 30 points, or 0.7 per cent, pointing to a solid start to trading for the Australian share market when it opens on Monday."

On the economic front in Australia, data on new home sales and private capital spending are released this week.

In the US this week, talks on resolving the so-called fiscal cliff are expected to intensify.

In the euro zone, Dr Oliver said the initial focus is likely to be on Sunday's regional election in Catalonia in Spain.

He said if secessionists do well in the election, confidence in Spain may suffer.

Also, European finance ministers meet on Tuesday, and are expected to reach an accord regarding financing a debt reduction package for Greece.

In China, the release on Friday of the official Purchasing Managers' Index (PMI), which is an indicator of business conditions, is expected to confirm that economic growth in China has bottomed.

On the company front in Australia this week, Harvey Norman Holdings and Brickworks hold their annual general meetings on Tuesday.

Australian Vintage, Cabcharge and Oroton have AGMs on Wednesday; BHP Billiton, Lend Lease Corporation and Macquarie Radio Network and Ramsay Health Care hold their AGMs on Thursday and Primary Health Care has its AGM on Friday.